The escalating situation between Ukraine and Russia is expected to force buyers of wheat, corn, and
The escalating situation between Ukraine and Russia is expected to force buyers of wheat, corn, and sunflowers to have to seek alternative sources and drive up prices, as the Black Sea region sinks into war.
Russia and Ukraine account for 29 percent of global wheat exports, 19 percent of the world’s corn supplies, and 80 percent of its sunflower oil exports. And traders and analysts fear that a war between Russia and Ukraine could significantly impact the movement of commodities, triggering a scramble for supplies just as prices are already at multi-year highs. Reports are already indicating that ships are avoiding entering the Black Sea and buyers are diverting vessels to other suppliers.
Although disruptions are expected in overall global availability, buyers in the Middle East and Africa are at most risk of supply disruptions, as 70 percent of Russia’s wheat exports went to buyers in two regions in 2021, which could lift demand from the U.S. and Canada.